MobX is a state management library that makes state reactive by making it observable. It works well with React by re-rendering components when the observable state changes. MobX adds observable capabilities to existing data structures like objects and arrays. Components can be made reactive by using the @observer decorator, which forces re-rendering when observable data changes. Actions are used to explicitly define state modifications and provide debugging information. Computed values automatically re-calculate when dependencies change. MobX includes tools for visualizing component re-rendering and state changes.